How to estimate quarterly required tax payments?
Estimated tax payments will be required to taxpayers if they have reached certain levels of adjusted gross income. In order to properly plan for your tax liability, the taxpayer should be aware of the appropriate estimated tax payments that will be due the IRS on a quarterly basis. If the taxpayer fails to make estimated payments, penalties will apply.
The visual below illustrates how the taxpayer would calculate the level of tax payments they should make. In the example, the taxpayer had a tax liability of $21,000 last year and an estimated tax liability of $73,000 in the current year.
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